CMHC Releases Comprehensive Report on Housing in Canada

    OTTAWA, Nov. 13 /CNW Telbec/ - New analysis that tracked how long
Canadians living in core housing need(*) remained in this situation over a
three-year period is unveiled in the 2008 Canadian Housing Observer, released
today by Canada Mortgage and Housing Corporation (CMHC).
    "The 2008 Canadian Housing Observer provides an in-depth picture of
housing trends and developments in Canada," said Karen Kinsley, President of
CMHC.
    "The 2008 Observer provides the first analysis of the dynamics of core
housing need over time, finding a significant turnover among urban Canadians
who lived in this condition."
    The 2008 Observer, CMHC's flagship publication, reveals 84.6 per cent of
urban Canadians were able to access housing that was in good condition,
suitable and affordable between 2002 and 2004.
    For the majority of the 15.4 per cent of urban Canadians who lived in
core housing need, it was temporary. Only 4.6 per cent of urban Canadians
lived persistently (all three years) in core housing need.
    The 2008 Observer also provides analysis of how Canada's housing market
developed through 2007, showing it experienced high housing starts, strong
sales, double-digit price increases and record-level renovation spending.

    Other key findings in this year's Observer include:

    - Strong employment and income growth continued to bolster homeownership
      demand in Canada. The rate of homeownership in Canada rose to 68.4 per
      cent in 2006, the largest increase between censuses dating back to
      1971.
    - In 2007, housing-related spending contributed close to $300 billion to
      the Canadian economy.
    - Mortgage arrears in Canada remain low. In 2007, slightly more than a
      quarter of one per cent of Canadian households (0.26 per cent) fell
      three or more months behind in their mortgage payments.
    - The composition of Canadian households continues to change as baby
      boomers age. For decades, couples with children have made up a
      declining percentage of all households, and the average size of
      households has shrunk.

    "CMHC's Canadian Housing Observer is an absolute 'must-read' for any
organization relying on housing statistics to communicate important messages
to decision makers. At its core, this annual publication provides credible and
well-documented statistics on a comprehensive array of topics, offering data
that can be trusted," said Jean Perrault, President of the Federation of
Canadian Municipalities (FCM) and Mayor of Sherbrooke, Québec.
    Complementing the 2008 print edition of the Observer is a detailed array
of online housing market and housing conditions data resources at
www.cmhc.ca/observer. This includes CMHC's Housing in Canada Online (HiCO), a
powerful and free interactive tool that provides access to data on national,
regional, local and off-reserve housing conditions, including core housing
need.

    As Canada's national housing agency, Canada Mortgage and Housing
Corporation (CMHC) draws on more than 60 years of experience to help Canadians
access a variety of quality, environmentally sustainable, and affordable homes
- homes that will continue to create vibrant and healthy communities and
cities across the country.

    For more information, visit www.cmhc.ca.

    Backgroounder attached.

    (*) Core housing need refers to households which are unable to afford
        shelter that meets adequacy, suitability, and affordability norms.
        The norms have been adjusted over time to reflect the housing
        expectations of Canadians. Affordability, one of the elements used to
        determine core housing need, is recognized as less than 30 per cent
        of the household income spent on shelter.


    Backgrounder - 2008 Canadian Housing Observer - Key Findings


    Recent Trends in Housing Affordability and Core Housing Need
    ------------------------------------------------------------

    - The incidence of urban core housing need in 2005 (13.5 per cent)
      remained at about the same level as in 2004 (13.6 per cent), largely as
      a result of Canada's sustained, healthy economy.
    - Estimates from 2002-2004 show that only 4.6 per cent of urban Canadians
      lived persistently (all three years) in an urban household in core
      housing need, while 10.8 per cent did so occasionally for one or
      two years.

    Influences on Housing Demand
    ----------------------------

    - Strong employment and income growth continued to bolster homeownership
      demand in Canada. In 2007, the unemployment rate hit the lowest level
      in over 30 years, and the rate of participation in the labour force
      reached a high for the same period.
    - Households headed by persons aged 40 and older accounted for all of the
      household growth in Canada over the period. Couples with children have
      represented a declining percentage of all households for decades and
      the average size of Canadian households continues to shrink.

    Current Market Developments
    ---------------------------

    - Housing starts edged up to 228,343 units in 2007, the second best
      performance in two decades. The largest percentage increases in total
      starts were in Saskatchewan (61.7 per cent) and Newfoundland and
      Labrador (18.6 per cent). Starts in Ontario, Nova Scotia and Alberta
      declined.
    - The average MLS(R) home price reached $307,300 in 2007, up 11 per cent
      from 2006. Saskatchewan, Alberta, Manitoba and British Columbia
      recorded the highest price increase.

    Housing Finance
    ---------------

    - Annual average mortgage credit outstanding rose to $774 billion in
      2007, up 11. 5 per cent from 2006. High house price gains were
      reflected in a 14.9 per cent increase in the average amount approved in
      2007.
    - Mortgage arrears in Canada remain low. In 2007, slightly more than a
      quarter of one per cent of Canadian households (0.26 per cent) fell
      three or more months behind in their mortgage payments.

    Sustainable, Healthy Communities
    --------------------------------

    - Appropriate urban planning can reduce automobile use, the community
      impacts of which go well beyond ill health caused by air pollution. The
      reduction of traffic in neighbourhoods has been shown to produce
      positive results on many fronts, including increased children's play,
      more social interaction, reduced noise, more walking and collision
      reduction -- all leading to a healthier, less stressful lifestyle.
    - Green roofs and reductions in impermeable street surfaces can improve
      water quality by absorbing rather than repelling water runoff.

    Northern Housing
    ----------------

    - The Northern Sustainable Housing near Dawson - a partnership between
      CMHC, the Tr'ondek Hwech'in First Nation and Yukon Housing Corporation
      - is a prototype for construction of northern housing that is energy-
      efficient and culturally acceptable to the occupants and community.
    - Nunavut Housing Corporation built an innovative five-plex housing
      design, which will address the unique cold-weather challenges of
      building in the North. This design received a CMHC award for Best
      Practices in Affordable Housing.

For further information: Julie Girard, CMHC Media Relations, Office:
(613) 748-4684, Cell: (613) 295-6330, jagirard@cmhc.ca